Network economics / Economie des Réseaux

Enseignant :

During the last two decades, network industries have been going through a tremendous transformation. Many countries worldwide liberalized traditionally monopolized network industries including telecommunications, electricity and transportation. New communication technologies such as mobile telephony and the Internet have become our inseparable companion in work and everyday life. Internet search engines, social networks, auctions and many other Internet platforms have been revolutionizing the business model of many industries. The purpose of this course is to introduce the main topics in network economics. We will study the characteristics of network industries and discuss why they lead to particular market outcomes, such as market dominance by a single firm. We will discuss pricing and product design strategies used by firms in such markets. We will also discuss the role of government in the regulation of network industries. Topics which will be covered include: (i) network effects and switching costs; (ii) compatibility and standardization; (iii) two-sided platforms; (iv) natural monopoly and regulation; (v) interconnection in telecommunications